Tax Day is upon us. Receipts have been organized, potential deductions examined and arduous piles of paperwork sorted as Americans struggle to minimize their tax burden. Striking among the various levies are the astronomical taxes placed on wireless goods and services. The latest installment in Mobile Future’s infographic series, Wireless Taxes, How Much Are We Paying?, shines the spotlight on the fact that U.S. mobile consumers pay nearly two and a half times the general tax rate for their much-cherished wireless service.
As mobile innovation revolutionizes every part of our lives, with more than 320 million wireless connections, American mobile users are paying more than their fair share in taxes. In the last ten years, wireless taxes have grown approximately four times faster than general sales taxes.
Today, there are more mobile subscriptions than people in the United States. Those wireless consumers are paying an average rate of 17.2% on their mobile bills, while general goods are taxed at just 7.3%. Ironically, both tanning, at 10%, and beer, at 9.2%, are taxed at lower rates that wireless. If wireless was taxed more equitably, mobile consumers would save $15 billion in taxes each year. The mobile technology sector is driving significant economic growth and wireless tax policies should not stand in the way.